That's the recommendation of analysts at Bell Potter, which believe this high-flying ASX tech stock could rise strongly from current levels.

What is the broker saying?

Bell Potter was pleased to see the lung imaging technology provider announce a significant expansion of its distribution agreement with Koninklijke Philips NV (NYSE: PHG) this week.

This for its FDA-cleared, non-contrast computed tomography (CT) ventilation and perfusion imaging solution, CT:VQ.

It highlights that Philips will expand its commitment via a dedicated sales force, incentivised to chase new business for CT:VQ. This is being funded by Philips and is in addition to a US$10 million minimum sales commitment.

Commenting on the deal, Bell Potter said:

The deal represents a significant win for 4DX at a time when numerous developers of AI based medical diagnostics have withered on the vine. 4D Medical has never promoted its products as self-learning, rather they are cloud deployed algorithms for diagnosis of various pulmonary defects where the data input is the images from conventional CT. The 4DX technology requires no additional hardware and fits in seamlessly with radiology workflows.

The revenue commitment by Philips relates only to the CTVQ product, nevertheless, the securing of a minimum contract value by a tier one distribution partner is a rarity and represents a further validation of the 4DX CTVQ technology and the intent by Philips to embrace the technology for the long term.

Time to buy this ASX tech stock

In response to the news, Bell Potter has reaffirmed its speculative buy rating with an improved price target of $2.50 (from $2.25).

Based on its current share price of $1.79, this implies potential upside of approximately 40% for investors over the next 12 months.

Commenting on its buy recommendation, the broker concludes:

We retain our Buy (Speculative) rating. Price target is raised to $2.50 from $2.25. Short terms catalysts include the first major new client signing under the Philips banner now anticipated in 1H26. We expect further wins from the 4D Medical sales team being mainly expansion of existing license arrangement to include fee for service revenues for CTVQ.

Overall, this could make this exciting ASX tech stock one to consider if it fits your risk profile.

The post Guess which ASX tech stock could rise 40% in 2026 appeared first on The Motley Fool Australia.

At the time of writing, the ASX tech stock is up 18% to $1.96.

Why is this ASX tech stock surging?

Investors have been scrambling to buy the respiratory imaging technology company's shares following the release of a promising announcement.

According to the release, the company has signed a significant expansion of its distribution agreement with Koninklijke Philips NV (NYSE: PHG) for its FDA-cleared, non-contrast computed tomography (CT) ventilation and perfusion imaging solution, CT:VQ.

Under the expanded agreement, Philips will add CT:VQ to its North American product portfolio, distributing the technology through its established commercial infrastructure and customer relationships.

Philips has agreed to a minimum of approximately A$15 million (US$10 million) in customer orders in 2026 and 2027.

The ASX tech stock also notes that Philips will allocate dedicated sales and clinical specialists carrying CT:VQ sales targets. Joint marketing initiatives and co-branding campaigns are being initiated to drive market awareness and adoption. RSNA (Radiological Society of North America) 2025 will mark the first major international launch event for the collaboration.

What is CT:VQ?

4D Medical describes CT:VQ as the world's first technology capable of extracting quantitative ventilation-perfusion (VQ) data from routine non-contrast CT scans.

The technology measures regional lung tissue motion and local density changes to generate comprehensive ventilation and perfusion maps without requiring radiotracers or contrast agents.

It notes that the solution addresses several critical limitations of traditional nuclear VQ imaging. By eliminating radiotracers, the technology streamlines scheduling, improves patient access, and removes complex handling requirements, and regulatory constraints. Importantly, CT:VQ integrates seamlessly with existing CT protocols.

There are over one million nuclear VQ scans performed annually in the United States, with an average reimbursement rate of approximately US$1,150 per scan. Management points out that this represents an addressable market of more than US$1.1 billion annually in the U.S., and over US$2.6 billion globally.

And given the clinical and logistical advantages of CT:VQ over traditional nuclear VQ imaging modalities, 4DMedical revealed that it is confident it can rapidly capture a significant part of this market.

Management also anticipates that the introduction of the solution into the market will drive long-term growth in demand for ventilation-perfusion scans beyond the traditional nuclear VQ indications.

Overall, these are exciting times for this ASX tech stock.

The post Why this exciting ASX tech stock is rocketing 18% today appeared first on The Motley Fool Australia.

At the time of writing, the sleep treatment company's shares are up almost 2% to $28.98.

This means its shares are now up over 7% since this time last week.

Why are ResMed shares rising again?

Investors have been buying the company's shares again on Tuesday after its main competitor Koninklijke Philips NV (NYSE: PHG) was dealt another major blow.

Overnight the Dutch health technology company revealed that it will not sell new sleep apnoea devices in the United States in the coming years while it works to comply with a settlement with the Food and Drug Administration (FDA).

This follows the 2021 recall of millions of Philips' breathing devices and ventilators amid concerns that the foam used on the device to reduce noise could degrade and become toxic. The company stated:

In the US, Philips Respironics will continue to service sleep and respiratory care devices already with healthcare providers and patients, and supply accessories (including patient interfaces), consumables (including patient circuits), and replacement parts (including repair kits). Until the relevant requirements of the consent decree are met, Philips Respironics will not sell new CPAP or BiPAP sleep therapy devices or other respiratory care devices in the US.

This is a big positive for ResMed in the enormous United States market. In fact, Goldman Sachs recently spoke about the massive opportunity that the Philips recall has given the company. So, the longer it is absent from the United States, the better for ResMed. Goldman said:

The PHIA recall (ordinarily 35-50% of market supply) has afforded RMD a generational opportunity to capture market share. While supply chain challenges have limited the upside from the recall to date, the rollout of the card-to-cloud OSA flow generators should bridge a majority of the deficit through to an easier period for component shortages. We see clear scope for market share gains (on top of the typical MSD/HSD market growth) to accelerate […]. We also see further upside to this growth trajectory if the PHIA recall is extended.

Goldman currently has a buy rating and $33.50 price target on ResMed's shares.

The post ResMed shares rise on major Philips news appeared first on The Motley Fool Australia.

In morning trade, the ASX healthcare share was up as much as 20% to $1.10.

Its shares have since pulled back a touch but remain up 13% to $1.04.

Why is this ASX healthcare stock rocketing?

Investors have been scrambling to buy the company's shares this morning after it announced a memorandum of understanding with healthcare giant, Philips N.V. (NYSE: PHG).

According to the release, the two parties will look to establish a strategic collaboration to expand federal and commercial sales opportunities for XV Technology in North America.

4DMedical's flagship patented XV Technology enables physicians to understand regional airflow in the lungs and identify respiratory deficiencies earlier and with greater sensitivity as they breathe.

The ASX healthcare stock notes that the signing of this memorandum of understanding represents a major step forward in its commercialisation strategy, particularly within the U.S. Veterans Health Administration (VA).

This is because Philips has a long-established and significant existing partnership with both the VA and the Department of Defense (DoD). This includes a 45-year relationship, deploying 35% of the critical care information systems across the VA. It also has Philips imaging solutions in 50% of VA hospitals and Veterans Integrated Service Networks (VISNs).

Management believes that accessing this team of industry experts, with "unparalleled relationships" in global healthcare, provides an "unprecedented opportunity" to accelerate its go-to-market activities.

The ASX healthcare stock's founder and CEO, Andreas Fouras, said:

To partner with a healthcare powerhouse such as Philips is a phenomenal opportunity for 4D to accelerate our mission. The depth of commitment to Veterans by the team at Philips North America has been palpable throughout our 6-month long discussions. I continue to be impressed by their leadership in this space, and I am convinced that a partnership with Philips will dramatically accelerate the scaling of our offering within the VA. I am incredibly excited by the reach this will give our technology, and importantly, the impact this will have for millions of Veterans and their caregivers.

The post Guess which ASX healthcare stock is rocketing on an 'unprecedented opportunity' with a global giant appeared first on The Motley Fool Australia.